STR581 Week 4 Individual - Running head STRATEGIC PLAN PART...

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Running head: STRATEGIC PLAN PART 3 1 Strategic Plan Part 3 STR/581
STRATEGIC PLAN PART 3 2 Strategic Plan Part 3: Strategic Evaluation and Recommendation Tesla’s Chief Financial Officer is in charge of administrative, financial, and risk management operations. This being said, the CFO plays a key role in strategic decisions. Below is a list of strategies and recommendations for Tesla from the CFO perspective. Potential Generic Strategies Generic strategies are strategies that are usable within a wide variety of markets by a wide variety of businesses on a wide variety of products, hence the term generic . Michael Porter identifies 3 different generic strategies. According to "Porter's Generic Strategies, Choosing Your Route To Success" (1996-2016), “Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely desirable products and services) and "Focus" (offering a specialized service in a niche market)” (Generic Strategies). The cost leadership strategy is basically when a company wants to provide products or services at the lowest price to the consumer. For Tesla, this is not an ideal strategy because it is so expensive to manufacture the vehicles. People also look for a certain quality in vehicles that the cost leadership strategy may not support. The differentiation strategy is one that is already in place at Tesla. Tesla offers all energy efficient vehicles. This is also a reason Tesla needs to look at new strategies. Providing these vehicles and these vehicles only is an expensive endeavor and that means the cost of the vehicles are higher. These type of vehicles are not the norm and the fact the price tag is so high may deter people even further. While Tesla is definitely different from its competitors, it needs to do better. The focus strategy is not really one that Tesla should implement either. The market for these vehicles is just not where it needs to be. Without more backing from the government, Tesla cannot expect people to just walk away from the fossil fuel vehicles that have

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